Sequential ambidexterity is a specific dynamic capability which can play an important role in the technological catch-up of latecomer firms with limited knowledge and resources. Through a longitudinal case study, the trajectory of a latecomer firm's transformation from a generic technology manufacturer to a world-class innovator is analysed. This paper finds that sequential ambidexterity can be the basis of building dynamic capability, which enabled a latecomer to become a market leader through three major transitions. It shows how the building of dynamic capability through sequential ambidexterity is dependent on four mechanisms: senior manager cognition of the environment; organization learning orientation; organization structure design; and process reconfiguration. Building dynamic capability is also dependent on alignment between these mechanisms within the firm. Theoretically, the paper enhances understanding of the micro-foundations of developing dynamic capability through sequential ambidexterity. It also suggests that three contingent dimensions in determining the optimal approach to ambidexterity are: (i) industry leading versus catch-up firms, (ii) the scale of the firm, and (iii) the diversity of the downstream market. Furthermore, the paper provides practical insights for latecomer firms seeking to catch-up with industry leaders.
On January 1, 2005, the Multi-Fibre Arrangement, which established quotas on different categories of apparel and textile imports to the European Union, was phased out. This article synthesizes the determinants of trade patterns in the absence of quotas and reviews their impact for the UK apparel retailer market. It assesses international strategic merchandising from China, post-quota elimination for the UK apparel market with particular reference to global adjustment to apparel supply. However, to sustain their domination of global fashion textile supply, particularly to EU markets, China will need to face the challenges of anti-dumping, technical regulations or standards, preferential trade agreements, regional free trade zones and other non-tariff trading barriers. The article concludes that China is well placed to exploit her position of dominance but suggests that sub-optimal considerations of cost versus response time to the EU retailer will provide a challenge for the future supply of fashion retail products.
Article information:To cite this document: Xin-min Peng Dong Wu, (2013),"Tie diversity, ambidexterity and upgrading of the latecomer firm in global production networks", Chinese Management Studies, Vol. 7 Iss 2 pp. 310 -327 Permanent link to this document: http://dx.
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